ONE fifth of Clare homeowners’ property tax is leaving the county to pay for services in other cities and counties.
More than half of the Local Property Tax (LPT) paid by Clare households is going back to the National Government, with 20 per cent of it being used to fund less financially effective councils across the country.
Irate members of the council last evening claimed they were being penalised for being “the good boys in the class” as it managed last year on the third lowest payout from central government funds nationally.
It emerged in a circular from central government to the council as late as last Friday, that 34 per cent of the Local Property Tax Fund will be used for funding roads and housing, a fund previously provided by central government from motor tax and other grants, and separate from the local government fund.
In essence from the € 10.4 million it is expected to collect in property tax, Clare County Council will be left with just € 4.7 million for essential council services.
Of that just € 2 million can be used at the council’s own descretion for services such as hedge cutting or taking housing estates in charge.
If the members vote to reduce this tax by 15 per cent, as they are allowed to do so, this figure will be reduced by a further € 1. 56 million.
According to the circular directed by the Minister for the Environment, Community and Local Government and seen by The Clare People , “Based on its surplus position when expected 2015 LPT receipts are compared to GPG Allocations 2014, Clare County Council will be not be in receipt of equalisation funding in 2015.
“Part of the surplus up to the equivalent of 20 per cent of total expected LPT income (or the full amount of the surplus if that is less than 20 per cent) can be used as discretionary income by local authorities for whatever purposes they wish as part of their normal budgetary process,” the letter stated.
“The remainder of the surplus, if any, will then be available to the local authority to fund vital services in the social housing and roads areas thereby replacing Central Government funding for some of these services.”
The funding of social housing and roads was not understood to be among the services covered by the LPT as they were not previously covered by the Local Government Fund.
Cllr Tom McNamara (FF) asked if the people of Clare were now to receive a 10 per cent reduction in their motor taxation costs to compensate for the money going to roads.
Each year Clare motorists pay € 30 million in motor taxation through the offices in Clare County Council. Of the money collected just 8.5 per cent of it is spent in Clare.
LPT funding collected in Clare will now also go towards road works.